Is your PSC still needed?
If all or most of a contractor’s work is going to be subject to payroll taxes under the off-payroll working rules, they may prefer to become a normal employee of that client. Although this may sometimes be an option, many clients will not offer it, as it would mean the worker having full employment rights (e.g. holiday pay and statutory sick pay). This is not the case with the off-payroll rules, where the client or other fee-payer merely pays over payroll taxes, but such statutory employment rights are given by the worker’s own PSC.
Where contractors no longer need their PSC, it can be ‘struck off’ or liquidated. The trade-off between the costs and tax-efficiency of these alternatives will need to be considered.
We can advise you on whether it is worth continuing to operate a PSC and, if not, how to get rid of it and withdraw your remaining profits as tax-efficiently as possible.